The South African (SA) Rand edged up in early trade on Wednesday, as traders turned their attention to inflation data for clues on the country’s economy ahead of an interest rate decision on Thursday, the last one for the year.
The Rand traded at 17.1550 against the Dollar , about 0.2% firmer than its previous close.
Domestically focused traders are waiting for October consumer inflation and September retail sales.
Economists polled by Reuters expect annual inflation will come in at 3.7% for October, up from 3.4%.
Nedbank economists anticipate a marked acceleration to 3.8%.
“Food prices are at peak levels, with the upside driven mainly by meat prices reflecting the ongoing challenges relating to foot and mouth vaccinations, while all other categories are showing signs of moderation,” the bank’s economists said in a note.
Retail sales are forecast to rise from 2.3% in August to 3% in September, based on Nedbank’s forecasts.
“The positive momentum in sales is being supported by a low base, more subdued inflationary environment, lower interest rates, and easing debt service costs, all of which have lifted real wages and boosted discretionary spending,” Nedbank said.
On the Johannesburg Stock Exchange, the Top-40 index was last up 0.4%.
SA’s benchmark 2035 government bond was firmer in early deals, as the yield fell 1.5 basis points to 8.66%.
–SABC–
